EU-China summit kicks off under shadow of fraught ties

A summit between China and the European Union (EU) has kicked off in Beijing on Thursday, with leaders set to discuss issues ranging from trade conflict to the war in Ukraine. Expectations have been tempered however by uncertainty over global trade, politics and the attendance of Chinese President Xi Jinping, after he had earlier reportedly declined a visit to Brussels, where the summit was originally to be held. China confirmed this week that Xi would meet European Commission president Ursula von der Leyen and European Council president Antonio Costa in…

As ‘2 big guys’ on world stage, China and Europe must work together: Xi

Chinese President Xi Jinping called for stronger communications and further engagement with the European Union, that he said could add certainties to the world. Advertisement “China and Europe should enhance communication, strengthen mutual trust, and deepen cooperation, providing the world with more stability and certainty through a stable and healthy China-Europe relationship,” the Chinese leader told visiting European Commission President Ursula von der Leyen and European Council President Antonio Costa on Thursday. Xi described China and the European Union as “two big guys” in the world, adding that the two…

US agrees deals with Indonesia, Philippines – but are Chinese firms a step ahead?

The United States has struck new trade deals with Indonesia and the Philippines, in a move analysts say could indirectly undercut China by reshaping regional supply chains and tapping rare earth reserves – even if Beijing is not explicitly targeted. Advertisement Still, some analysts warn that efforts to counter China may deliver less than intended results, as Chinese firms are already adapting by localising operations across Southeast Asia. “Having failed to secure direct wins against China on tariffs and export controls, [the US] has a stronger incentive to contain China…

Could China’s Tibet mega dam help boost its sway with South Asian neighbours?

Advertisement According to some estimates, the dam on the Yarlung Tsangpo will be the world’s biggest, producing up to 300 billion kilowatt-hours of electricity each year, three times the output of the Three Gorges Dam. State news agency Xinhua said over the weekend that its output would “primarily deliver electricity for external consumption” but would also meet local demand in Tibet. India is also worried about Beijing’s efforts to strengthen its influence in South Asia, and Chinese observers said the project could help increase its sway over countries such as…

Big US toymakers seek to diversify away from China as tariffs bite

Stay informed with free updates Simply sign up to the Retail & Consumer industry myFT Digest — delivered directly to your inbox. Big US toymakers said they are accelerating efforts to diversify away from China as they warned tariffs would weigh on financial performance this year. Mattel, the toymaker behind Barbie dolls and Hot Wheels, said it expected its US imports from China to decline to below 10 per cent by 2027, from less than 20 per cent currently. Monopoly-maker Hasbro said it planned to cut its China exposure by…

Scott Morrison tells US Australia risks going to sleep on China threat after diplomatic ‘charm and flattery’

The Chinese Communist party hopes Western democracies “go to sleep on the threat” it poses to the international order, former prime minister Scott Morrison has told a congressional committee in the US. In a forthright appearance before the hawkish US House of Representatives select committee on the strategic competition between the United States and the Chinese Communist party, Morrison said China had changed diplomatic tack after he lost the 2022 election to Anthony Albanese. “This included abandoning their economic and diplomatic bullying and coercion for more inductive engagement, laced with…

Trump administration issues plan to limit AI exports to China

The White House on Wednesday released proposals to restrict exports of American AI equipment and limit the spread of Chinese AI models as part of a sweeping plan to shape the rules governing the fast-moving technology. Advertisement The 28-page AI Action Plan marks US President Donald Trump’s administration’s first comprehensive strategy on the topic and comes as national security hawks have raised concerns that superior American chips may reach China – including through third countries – and advance its AI and military development. Under the plan, the US Commerce Department…

Which countries will pick sides in a US-China conflict over Taiwan?

There has been much speculation as to which third parties might get involved if war broke out between China and the United States in the Taiwan Strait. In June, The Economist published an article on this very question. More recently, the Financial Times reported that the US had been putting pressure on Japan and Australia to clarify what role they would play in such a situation. Advertisement It appears that there would be few countries on China’s side. China’s only treaty ally is North Korea. A 1961 treaty obliges the…

Keir Starmer and Narendra Modi to sign UK-India trade deal

Unlock the Editor’s Digest for free Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter. UK Prime Minister Sir Keir Starmer and his Indian counterpart Narendra Modi will on Thursday sign a trade deal between the two countries that London believes will boost British exports to India by 60 per cent by 2040.  The agreement, first announced in May, means tariffs on more than 90 per cent of UK exports to India will be cut, with the largest reductions on cosmetics, clothes and food and…